SPE4A6-15-R-0340****

SECTION M – EVALUATION FACTORS

Compressed Gases and Cylinders

SPE4A6-15-R-0340

**SECTION M – Evaluation Procedures**

**EVALUATION BASIS FOR AWARD**

1. **Basis for Contract Award.**

This acquisition will utilize the Tradeoff source selection procedures in accordance with FAR 15.3 as supplemented by the DoD Source Selection Procedures referenced in DFARS 215.300, and DLAD 15.300-90 to make an integrated assessment for a Tradeoff award decision.  The Government intends to award one contract as a result of this solicitation.  In using the Tradeoff approach, the Government seeks to award to the offeror who gives the Government the greatest confidence that it will best meet or exceed the requirements affordably in a way that will be advantageous to the Government. This may result in an award to a higher rated, higher priced offeror where the decision is consistent with the evaluation factors and the Source Selection Authority (SSA) reasonably determines that the technical superiority and/or overall business approach and/or superior past and present performance of the higher priced offeror outweighs the cost difference. To arrive at a best value decision, the SSA will integrate the source selection team’s evaluations of the factors and subfactors described in this provision.  While the Government will strive for maximum objectivity, the tradeoff process, by its nature, is subjective; therefore, professional judgment is implicit throughout the selection process. Award will be made to the responsible offeror whose proposal conforms to all solicitation requirements, such as terms and conditions, representations and certifications, technical requirements, and also provides the best value to the Government based on the results of the evaluation described in paragraph 2 below.   Contract terms and conditions consistent with customary commercial practices are specified in the solicitation/contract, with otherwise tailored terms and conditions specified in the Addendum to the solicitation/contract.**

The Government reserves the right to conduct discussions if determined necessary but intends to award without discussions.  Any discussions will be conducted in accordance with FAR 15.306*.*

If the Contracting Officer determines that the number of proposals that would otherwise be in the competitive range exceeds the number at which an efficient competition can be conducted, the Contracting Officer, with the concurrence of the Source Selection Authority, may limit the number of proposals in the competitive range to the greatest number that will permit an efficient competition among the most highly rated proposals.  

2. **Factors and Subfactors and Relative Importance.**

**A.  A detailed and complete analysis of each offeror’s proposal will be performed. The Government’s evaluation will be based on the following factors and subfactors:**

Factor I.  Technical 

Subfactor:  Quality Assurance

Subfactor:  Product Management

Subfactor: Refurbishment and Disposal

Factor II.  Management

Subfactor:  Inventory Management

Subfactor:  Risk Management

Subfactor:  Transition Plan

Subfactor:  Customer Service 

Factor III. Past Performance 

**Each offeror’s proposal will be evaluated and the Government will make a determination of the relevancy and confidence level using the scales in Tables 1 and 2 as replicated below.  While the Government will strive for maximum objectivity, the Tradeoff process, by its nature, is subjective; therefore, professional judgment is implicit throughout the selection process.  The offerors that provide the best value to the Government are based on the results of the evaluation criteria described in the paragraph below.**

Factor IV. Cost/Price

**B.  Relative Importance of Each Factor and Subfactor.  Among the evaluation factors considered in the tradeoff decision, technical/management, which includes the technical/management rating and technical/management risk rating, is the most important followed by past performance, and then cost/price. Technical/management, which includes technical/management rating and technical/management risk rating, past performance, when combined are significantly more important than cost or price.****

**3.   Proposal Evaluation. The evaluation process will be accomplished as follows:**

A. **Technical and Management Factors**

Each offeror’s technical and management proposals shall be evaluated based on the subfactors below, to determine if the offeror provides a sound, compliant approach that meets the requirements of the******SOW and POTs, and demonstrates a thorough knowledge and understanding of those requirements and their associated risks. The technical proposal addresses each of the following subfactors in sufficient detail.  For each subfactor, the offeror identifies risks, if any, associated with the proposed approach and actions the offeror will take to mitigate the identified risks. If no risks/mitigations are identified in the offeror’s proposal, it indicates the offeror does not consider there to be any risk associated with their proposed approach.

**Factor 1:  Technical**

Subfactor 1:  Quality Assurance:  An acceptable approach must identify the actions employed to ensure compliance with product quality and control standards in the SOW.  Describe in detail how shelf life management will be managed and maintained.   Provide effective measures for HAZMAT handling and procedures that demonstrate compliance with federal, state, and local laws and regulations; and procedures that are tailored to support these commodities.      

Subfactor 2:  Product Management:  An acceptable approach demonstrates the ability to support the Governments technical documents in the form of POTs.  An acceptable approach will demonstrate compliance with special testing , reporting and certification requirements.  An acceptable approach demonstrates the ability to manage the Government Furnished Property (GFP) cylinder pool and address the process for cylinder retesting and re-certification.  Offeror must demonstrate a capability to identify additional or new sources to include quality testing and reporting technical documentation to the government to support proposed product changes.  Explain the process for preparing products for shipment and the compliance with the applicable federal, state, and local requirements.  Identify the plan and actions that will be taken to address product deficiencies/discrepancies.

Subfactor 3:  Refurbishment and Disposal:  An acceptable approach will identify the offeror’s location(s) where cylinder refurbishment and cylinder disposal will be performed.  In addition, an acceptable approach will contain a detailed plan that explains the rate and process of turnover for cylinder refurbishment.  In addition it will identify the proposed processes for cylinder refurbishment and cylinder disposal.  

**Factor 2:  Management**

Subfactor 1:  Inventory Management:  An acceptable plan will describe an effective process and controls from receipt of a government order to delivery.  The plan must include all elements necessary and the times associated with meeting the government’s TDD requirements per the SOW.  The plan must address the hub locations for GFP returns from OCONUS locations.  It must also address how VMI will remain in the same condition code as it was received.  Additionally, the plan will identify the support for the identified FSL locations.  

Subfactor 2:  Risk Management:  An acceptable risk management plan will identify and address specific risks that may impact this program and its successful implementation and long-term management.  The plan must demonstrate the ability to identify specific quantitative and qualitative risks and effective mitigation strategies that demonstrate the clear ability to ensure uninterrupted performance at the required level of product support.  The plan must also provide detail regarding subcontractor and vendor management that encompasses the entire population of items within SOW Attachment 1 included herewith.

Subfactor 3:  Transition plan:  An acceptable transition plan must identify all actions required for successful implementation of this contract in accordance with the SOW.  The transition plan must provide dates after receipt of award, significant actions, identify actions that may require Government support, and completion of all actions with a specific date for the beginning of acceptance of orders from the Government.  An acceptable implantation plan will include how the GFP cylinder pool will be established.

Subfactor 4:  Customer Service:  An acceptable customer service plan will identify the means by which customer service is to include but not limited to how cylinder pick-up and returns will be handled to include appropriate access to military installations for deliveries.  An acceptable customer service plan shall also address how the offeror will ensure the availability of cylinders will keep product availability at levels to meet demand without interruption. 

1. **Technical and Management Ratings**. The technical and management ratings evaluate the quality of the offeror’s technical and management solution for meeting the Government’s requirement.  Each Technical and Management subfactor identified above will receive one of the color ratings described in the DoD Source Selection Procedures excerpted below, which *(modify if any Technical subfactor will be evaluated on an “acceptable/unacceptable”basis.)*focuses on the strengths and deficiencies of the offeror's proposal.  The color rating depicts how well the offeror’s proposal meets the Technical and Management subfactor requirements.  Subfactor ratings shall be rolled up into an overall color rating for the Technical and Management factor. In arriving at a best value decision, the Government reserves the right to give positive consideration for performance in excess of threshold requirements, up to the objective requirements. No further positive considerations will be given for performance in excess of the objective requirements. 

**2.  Technical Risk and Management Risk Ratings**.****Technical risk and Management Risk, which is manifested by the identification of weaknesses, assesses the degree to which an offeror’s proposed approach for the requirements of the solicitation may cause disruption of schedule, increased costs, degraded performance, the need for increased government oversight, and the likelihood of unsuccessful contract performance.  The evaluation shall address the Source Selection Team’s identification of any weakness as well as the offeror’s identified risks and proposed mitigation (if applicable) and document why that is or is not manageable.  Each Technical and Management subfactor will receive one of the Technical Risk and Management Risk ratings described in the DoD Source Selection Procedures, excerpted below.  Subfactor Risk ratings shall be rolled up into an overall Risk rating for each Technical and Management factor.

B. **Past Performance Factor**

The past performance assessment will assess the confidence in the offeror’s/joint venture member’s ability (which includes, if applicable, the extent of its critical subcontractors’ involvement) to successfully accomplish the proposed effort based on the offeror’s demonstrated present and past work record.  A critical subcontractor is defined as any subcontractor providing support for technical compliance which represents a significant out-sourced capability, HAZMAT testing capability, source of packaging / repackaging, or warehouse or storage facilities.  Material sources of supply are not considered critical subcontractors.  The Government will evaluate the offeror’s/the critical subcontractors’ demonstrated record of contract compliance in supplying products and services that meet users’ needs, including cost and schedule.  The recency and relevancy of the information, the source of the information, context of the data and general trends in the contractor’s performance will be considered.  More recent and more relevant performance usually has a greater impact in the confidence assessment than less recent and less relevant performance.  For purposes of this evaluation, recency is defined as active or completed efforts performed within the past three (3) years from the issuance date of this solicitation.  The Government will perform an independent determination of relevancy of the data provided or obtained.  A relevancy determination will be made for each of the recent four (4)**submitted contracts.  The Government is not bound by the offeror’s opinion of relevancy.  The following relevancy criteria apply and will be assigned to each effort identified in the offeror’s Volume 5 of its proposal:

**Very Relevant** – Has performed commercial or government logistics or supply chain management contracts that have supported processing individual transactions in excess of 500 per month; includes hazardous materials handling, packaging or repackaging requirements; supports multiple transportation modes to include those bound for overseas final delivery; compliance with federal, state, and local regulations including hazardous or regulated materials; has experience in handling/supporting both of the FSCs included in this contract; experience managing and maintaining a diverse vendor base; and an excess of 250 refurbishment transactions per month.

**Relevant**–  Has performed commercial or government logistics or supply chain management contracts that have supported processing individual transactions in excess of 400 per month; packaging or repackaging requirements; supports multiple transportation modes; compliance with federal, state, and local regulations including hazardous or regulated materials; has experience in handling / supporting both of the FSCs included in this contract; experience managing and maintaining a diverse vendor base; and an excess of 100 refurbishment transactions per month.

**Somewhat Relevant** -  Has performed commercial or government logistics or supply chain management contracts that have supported processing individual transactions in excess of 200 per month; supports multiple transportation modes; compliance with federal, state, and local regulations including hazardous or regulated materials; has experience in handling / supporting both of the FSCs included in this contract; experience managing and maintaining a diverse vendor base; and an excess of 50 refurbishment transactions per month.

**Not Relevant**:  Present/past performance effort involved little or none of the scope and magnitude of effort and complexities this solicitation requires.  

**NOTE**: Scope and magnitude of effort and complexities in the above definitions not only includes the technical features and characteristics identified for each effort, but also the logistical and programmatic considerations including but not limited to quantity produced, length of effort, dollar values, type and complexity of products supported.  When assigning a relevancy rating to a contract effort, the Government will consider the technical complexities, and the programmatic/logistical scope and magnitude of effort as separate aspects.  If both of these aspects are not reflected in the submitted contract effort, the overall relevancy rating assigned to that contract will be affected.  For example, if the submitted contract meets essentially the same technical complexities, but involves only some of the programmatic/logistical scope and magnitude of effort, a lesser relevancy rating will be assigned.**

In assessing present and past performance, the Government will employ several approaches, including, but not limited to:

**1.**  The Past Performance Team evaluation is not limited to review of the information provided in the offeror’s Present/Past Performance volume.  Present/Past performance information shall be obtained from the Government’s Federal Awardee Performance and Integrity Information System (FAPIIS) and the Past Performance Information Retrieval System (PPIRS).  The Government reserves the right to use performance information from other sources such as Defense Contract Management Agency (DCMA), Fee Determining Officials, or commercial sources.  Data from previous source selections may be used if the data is recent and relevant.

**2.**  Offerors/critical subcontractors shall be given an opportunity to address adverse past performance information if the offeror, or critical subcontractor has not had a previous opportunity to respond to the information.  Recent contracts will be examined to ensure that corrective measures have been implemented.  The confidence assessment will consider issues including but not limited to the number and severity of the problems, the appropriateness and/or effectiveness of any corrective actions taken (not just planned or promised), and the overall work record.  Prompt corrective action in isolated instances may not outweigh overall negative trends.

**3.****For offerors/critical subcontractors that are newly formed entities (in existence less than three (3) years**from the issuance date of this solicitation) who either have no prior contracts or do not possess relevant corporate past performance, but have key personnel with relevant past performance while employed by another company, the quality of such key personnel’s performance as verified by the Past Performance Team will be considered if the submitted contract involves the key personnel performing the same role currently being proposed on the instant acquisition and this performance occurred during the past three (3) years from the issuance date of this solicitation.  The Government will take into account past performance information regarding predecessor companies, affiliates, other divisions, or corporate management if such was provided for evaluation and if the offeror’s past performance volume demonstrates the company, affiliate, or division will provide the offeror with resources for the instant proposed effort, such as workforce, management, facilities, or other capabilities demonstrating direct and meaningful involvement in the performance of the proposed instant effort.

**4.****The Government shall consider an offeror’s/critical subcontractor’s contracts in the aggregate should the present and past performance lend itself to this approach.  That is, an offeror’s four (4) contracts may by definition represent only a rating less than very relevant when each contract is considered as a stand-alone effort.  However, when these contracts are performed concurrently (in part or in whole) and are assessed in the aggregate, the work may reflect greater magnitude of complexities and/or magnitude of effort and such may be reflected in the confidence assessment.  A critical subcontractor’s two (2) contracts may by definition represent only a rating less than very relevant when each contract is considered as a stand-alone effort.  However, when these contracts are performed concurrently (in part or in whole) and are assessed in the aggregate, the work may reflect greater magnitude of complexities and/or magnitude of effort and such may be reflected in the confidence assessment.  The Government may consider a critical subcontractor’s submitted contracts in the aggregate in this same manner if their submitted efforts were performed concurrently (in part or in whole).  Then considering the offeror’s/critical subcontractor’s respective role and their work in aggregate as well as the critical subcontractor(s) role and their work in aggregate, a confidence assessment rating will be assigned for the team as a whole.

As a result of the recency, relevancy and quality assessments of the contracts evaluated, one confidence assessment rating as described in the DoD Source Selection Procedures will be assigned to the Past Performance factor.  The performance confidence assessment ratings are excerpted below.

**RatingDefinition**

Substantial ConfidenceBased on the offeror’s recent/relevant performance record, the Government has a high expectation that the offeror will successfully perform the required effort.

Satisfactory Confidence Based on the offeror’s recent/relevant performance record, the Government has a reasonable expectation that the offeror will successfully perform the required effort.  

Limited Confidence Based on the offeror’s recent/relevant performance record, the Government has a low expectation that the offeror will successfully perform the required effort.  

No Confidence Based on the offeror’s recent/relevant performance record, the Government has no expectation that the offeror will be able to successfully perform the required effort.

Unknown Confidence No recent/relevant performance record is available or the offeror’s performance record is so sparse that no meaningful confidence assessment rating can be reasonable assigned.  

Offerors without a record of past performance or for whom information is so sparse that no confidence assessment rating can be reasonably assigned will not be evaluated favorably or unfavorably on past performance and, as a result, will receive an “Unknown Confidence” rating.  A strong record of relevant past performance may be considered more advantageous to the Government than an “Unknown Confidence” rating.

**C.****Cost/Price Factor****The offeror’s Cost/Price proposal will be evaluated for Reasonableness, Balance, and Total Evalauted Price (TEP).  TEP will be calculated in accordance with the following:

· **Reasonableness.**Adequate price competition is expected to support the determination of reasonableness.  Price analysis techniques may be utilized to further validate price reasonableness.  If adequate price competition is not obtained or if price reasonableness cannot be determined using price analysis of Government obtained information, additional cost data IAW FAR 15.4 will be required to support the proposed price.

· **Balance.**Unbalanced pricing is discussed in FAR 15.404-1(g).  Unbalanced pricing exists when, despite an acceptable total evaluated price, the price of one or more contract line items is significantly overstated or underestimated as indicated by the application of analysis techniques.  The Government shall analyze offers to determine whether unbalanced separately priced line items or sub-line items exist.  Prices submitted will be compared and evaluated to assure a logical progression exists as related to price.  Offers that are determined to be unbalanced may be rejected if the lack of balance poses an unacceptable risk to the Government.

· **Total Evaluated Price.**A TEP will be calculated for evaluation purposes only and used to assist in determining the best value to the Government.  The TEP will be evaluated as follows:

· Proposals shall be evaluated, for award purposes. Based upon the total price proposed for items identified for pricing which are applicable to the basic requirements and other price-related issues.  The TEP shall include all costs associated with providing the final items to the Government.  The TEP will be calculated as the sum of the following: 

· All items to be priced in SOW Attachment 1 of the RFP, at the quantities stated.  The total material price will be evaluated by multiplying proposed price times estimated annual demand times 9, to account for the transition period.  The years will be totaled to arrive at a 10-year material contract value.   

· Management Fee and Throughput Fee will be evaluated by adding the fee offered for each year to arrive at a ten-year value.  

· Cylinder refurbishment will be evaluated by multiplying EAD times the proposed prices for the list of refurbishment and disposal services.  

· Transition fee will be added to the evaluated Management Fee, Throughput Fee, and Cylinder refurbishment fee to arrive at a 10-year total service fee.  

· Offerors are advised that the evaluation of item prices shall not obligate the Government to award each item.

(End of Section M)

Source Selection Information -- See FAR 2.101 and 3.104

Source Selection Information -- See FAR 2.101 and 3.104